A KEY claim made by Ipswich Mayor Paul Pisasale over the setting up of his political campaign fund has been refuted by the state’s peak local government body.

Cr Pisasale has previously said his campaign fund Forward Ipswich was set up to ­reduce his personal income tax bill, following advice from the “taxation department” and the Local Government Association of Queensland.

But LGAQ boss Greg Hallam has rejected those claims.

Cr Pisasale told The Courier-Mail on May 13 there was nothing untoward about the fund. “I don’t know why everyone thinks it’s something sneaky,” he said.

Cr Pisasale repeated the claim about receiving advice from the LGAQ and others on ABC Radio on May 27.

But Mr Hallam said an LGAQ representative had only had a “one-minute conversation” with Cr Pisasale in which he was told to talk to the Australian Taxation Office or an accountant.

He said the LGAQ never advised councillors or mayors in setting up campaign funds.

“We advised him to talk to the ATO or a tax accountant, that’s the extent of it,” Mr Hallam said. “We have never, ever given advice in our history on political or other funds,” Mr Hallam said.

Cr Pisasale’s spokesman, asked about the different accounts, stated: “Mr Mayor and Mr Hallam agree. Paul tells me the advice on the phone was to seek further ­advice, etc. Council is making no further comments on the other matters.”

Forward Ipswich’s activities are under scrutiny after revelations donations it received have not been declared by Cr Pisasale. The matter is before the Crime and Misconduct Commission after Local Government Department referral following reports by The Courier-Mail on the fund.

Cr Pisasale told The Courier-Mail last month Forward Ipswich was “totally separate from Paul Pisasale”, but confirmed he was its president. He said its bank account required the signatures of any two committee members.